Strategic Review based on Zara Case Study Essay

Strategic Review based on Zara Case Study - Essay Example The report presents a brief introduction to the capabilities and competence of the organization which leads to the competitive advantage of Zara over its rivals. Resource audit of Zara briefly highlights the physical, financial, and intellectual resources of the company. It also puts some light on human resource and then critically evaluates the intangible assets of the company. The report clearly mentions that vertical integration is the hallmark of Zara which is well supported by its value chain. The paper critically discusses how Zara adds value to its products to gain a competitive advantage to dominate the fashion industry. Zara is one of the most recognized global brands in the world, but it was badly affected due to the allegations of slave-labour. The incident is stated briefly in the middle of the paper. In the end, the case study configures that Zara is practicing a hybrid strategy which is combination of cost leadership strategy and product differentiation strategy. The pa per recommends few steps and target markets where Zara should venture. No doubt, due to globally changing scenario, Zara must take few innovative steps with respect to its online retailing network and expansion strategy. Table of Contents Table of Contents 3 1.0Introduction (203 words) 4 1.1 Aims and Objectives 4 1.2 Methodology 4 2.0The External Environment (1201 words) 5 2.1 PESTEL-DG (All information extracted from Appendix-1) 5 2.2 Porter’s 5 Forces 7 3.0The Internal Strategic Audit (1192 words) 9 3.1 Resource Based View (RBV) 9 3.1.1 Resource Audit 9 3.2 Value Chain 11 4.0The Company Reputation and Brand Image (486 words) 13 5.0Zara’s Strategy and Recommendations (1308 words) 15 6.0REFERENCES 20 7.0 Appendices 23 7.1 – Appendix 1 – PESTEL-DG 23 7.2 – Appendix 2 – Porter’s 5 forces 24 7.3 – Appendix 3 – Resource Audit 25 7.4 – Appendix 4 – VRIO Model 26 7.5 – Appendix 5 – Value Chain 27 1. 0 Introduction (203 words) Zara apparel has become the flagship brand of the ?2.5 billion holding group Inditex (Zara Case Study, 2013), Zara has 1,751 stores around the world with 65 in the UK alone (Inditex Group, 2013). The company’s founder, Amancio Ortea Gaona, began retailing clothes in 1963 with the first Zara store opening in 1975. He is current the third richest man in the world with a net worth of ?38 billion (Forbes, 2013). Zara’s strategy has been instrumental to its success, hence why it is so important to analyse it. This report is a strategic report which will review Zara and the industry it is in. It will primarily focus on the UK market but will also include global aspects. 1.1 Aims and Objectives This report has four main aims and objectives: To analyse the external environment To carry out an internal strategic audit To review the company’s reputation and brand image To identify the company’s current strategy and give recommendations on how they should continue in the future. 1.2 Methodology This report took an analytical approach grounded in existing literature and evidence from reliable journalistic, practitioner and government sources. All the research is secondary research based mostly upon qualitative data but also including quantitative information were needed. 2.0 The External Environment (1201 words) This section is focused to looking at the external envi

Control Process in Management Research Paper Example | Topics and Well Written Essays - 500 words

Control Process in Management - Research Paper Example The control process, in this case, can be described by use of the following steps; first, the management of united airlines makes establishes plans (Morden 156). In this cases, the united airline have a committee that is composed of members from the entire department in the organization. The committee is charged with the responsibility of formulating plans for the organizations. The committee formulates plans and set standards to achieve the objectives. The plan formulated by the committee must define the expected results and how results will be verified. Second, measurement of performance actual performance; in this case the management of united airlines measures the actual productivity obtain and this through the various method of performance appraisal. For example, in the year 2007, the actual sales from online booking ticket was 213,456 tickets. The organization a clear method of gathering and reporting tickets sold during the period.  The third step is comparing the actual performance achieved with the standards. This step compares the actual performance with the set standards, in this case, the managers of united airlines determine whether any deviations from the set standards are. In this steps the variation between the actual results and the set standard are determined. In the fourth step, the manager determines the action that should be taken where there are deviations from the set standards. This step is known as the† Take corrective actions† the manager determines the changes that should be taken if there is a ny, and how to implement those changes.